Yes we must be sensitive to all CGB shareholders & their strategy, depending on said strategy the impact of this prolonged re-compliance process will effect shareholders differently.
Since the suspension of trading for CGB we have seen a few developments for both global markets & CGB uniquely.
1) We observed significant retreats in sp across most markets, the mm market particularly badly hit. With infated market caps & next to no returns on the back of rapid sp growth over a relatively short time span this came as no suprise to me & I called it before it happened on this forum.
2) We have seen the mm stocks marginally stabilize when compared to 2 months ago. Announcements have not greatly impacted sp across the mm board. Would CGB announcements go against this trend?
3) Global stocks have seen a bit of a resurgence since Christmas on the back of talks between US & China. Many analysts are worried that a large part of any possible boost from a positive announcement from both parties has already been priced into current global sp. What market analysts are worried about is that too much emphasis is been placed on USA/China negotiations & not enough emphasis on macro environments or global economies. Perhaps tunnel vision across traders?
So what's this mean for CGB in my opinion?
CGB have been sheltered from the storm, particularly shareholders with a longer term strategy. It's highly likely the sp would have negatively impacted if trading over the last 6 months.
CGB have had some interesting development's with great potential however until the company can demonstrate revenue it will be a challenge to hold or build upon the current sp.
It is unlikely any of the development to date will be overly valued by the markets, particularly when a large % of traders are keeping their powder dry on the sidelines waiting & watching the markets. Cash is not free flowing into this sector just now.
CGB need some positive news on hemp harvest front & to commence the roll-out of products into Asia before re-listing to firm up shareholders positions. The mm market is not matured & we need to focus more on other divisions in the short term to give shareholders the best opportunity at sp stability/growth. The Bonify deal was an outside chance at generating revenue amongst fairly bare market right now however given their licence suspensions this would now appear unlikely to have been materialised.
A re listing today could see both traders & long termers get slaughtered.
At the very minimum we need to see some signs that revenue is within CGB grasp near term.
Again, sympathies to anyone effected more than others by this re-compliance procees or who disagree with my outlook which remains positive but cautious inline with global conditions.
Regards, Dan.
CGB Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
